The Definitive Ranking of the Best Plazas in Madrid

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My favorite activity of all time is drinking outdoors in pleasant weather (or any weather for that matter). It’s something I do every single day living in Madrid. For this reason I know just about every outdoor space there is in Madrid with tables to sit at and beer to drink.

I have compiled a list of my favorite plazas in order of my personal preference for your convenience. I also have included where I love most to eat, drink and hang out in each of them.

Map of My Recommended Plazas

What’s So Great About Plazas?

Plazas are an incredible testament to the Spanish way of life. For me, they’re the heart and soul of Spain. They are public spaces all throughout the city where people gather, meet up, where children play and old people exercise, where owners take their dogs to socialize, a place to have a meal or a drink with friends or a place to sit and read. They are often the sites of celebrations and events such as Christmas markets, flea markets and summer festivals.

Many plazas are centered around fountains which not only provide beauty in a public space but also have a cooling function in the hot summer months.

By providing comfortable public gathering spaces, plazas encourage people to come together and socialize. A plaza is such a simple concept but when central spaces are dedicated to the public in this way, so many people can benefit. Spain absolutely excels in plazas! No wonder their life expectancy is one of the highest in the world – the infrastructure of the cities they live in are built for socialization and connection!

How do Terraces Work in Madrid?

Maybe you will find the following information to be obvious but there are some cultural idiosyncrasies to Spanish terrace culture. The Spanish even have a colloquial verb terracear which means to hang out on a terrace. That’s my favorite word ever!

🥜 It is typically the case that any bar, cafe or restaurant that has a terrace serves alcohol even if you do not order food. It is specific to Madrid that you get a small snack each time you order drinks such as chips, olives, a nut mix or even a small tapa (this is not the case in every Spanish city!)

🚬 Smoking is permitted (duh we’re in Europe) and waiters will usually bring you a clean ashtray if they see you puffing away.

man holding potato chips
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free chips with drinks at the terrace bar of La Mandarina China at Pl. Cascorro

What to Order?

Drink options are usually pretty limited in restaurants and even bars. The closest you’d get to a cocktail is a mixed drink like a gin and tonic. If you order beer, your server will likely just get you whatever’s on tap. If you order wine you only need to specify red or white. Bars will also always have a coffee machine.

a glass of tinto de verano
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no better libation than a tinto de verano on a hot day

Here’s a quick guide on what to order:

  • Una caña / un doble / una cerveza – a glass of beer (I’ve observed, on average, regardless of the size of beer you request in Madrid they will bring you the standard size)
  • Un tercio – a beer in the bottle
  • Una clara con limón – a drink consisting of beer and Fanta limón (lemon Fanta)
  • Un tinto de verano – a drink consisting of red wine and soda (either Fanta limón or Casera which is a sweet soda like Sprite without the lemon lime flavor)
  • Un kalimotxo – a drink consisting of Coca Cola and red wine
  • Una copa de vino blanco / rojo – a glass of white or red wine
  • Un vermut – a glass of vermouth (sweet red vermouth is the standard)
  • Un vaso de agua de grifo – a glass of tap water (Madrid tap water is unparalleled in quality)
  • Un gin tonic – gin & tonic usually with your choice of gin
  • Un ron con coca cola – rum and coke
  • Un cafe con leche – a latte
  • Un cortado – espresso with a tiny bit of foamed milk
  • Un cafe solo – an espresso shot
  • Cafe con hielo – a latte + a cup of ice

Payment

Terrace bars, restaurants and cafes will typically charge a 10% terrace fee on top of your bill for sitting outside. Servers sometimes have to cross streets to bring your drinks to you so it’s well deserved.

Split payments among groups are very common in Spain. Once you receive the bill you are expected to do the math yourself for what you owe and to tell the server how much you will pay individually.

Operating Hours

Operating hours of terraces vary based on time of year, day of the week and location in saturated zones.

From March 15 – October 31 and on Fridays, Saturdays and days before holidays, terraces close at 1:30AM. From Sunday to Thursday they close at 1AM. For the rest of the year terraces shut down at 12PM. However, many terraces popular terraces, including on this list, close at 11PM because they are located in saturated zones. These hours are imposed to give residents who live above these plazas peace and quiet through the night.

My Ranking of Madrid Plazas

There are probably a hundred plazas in Madrid but here is my ranking of my top 10 favorites. Some major plazas, like Plaza Mayor, I did not list because they are touristy, unpleasant and overcrowded or don’t offer anywhere to sit and drink so I will be excluding them. Some other plazas are tiny, hidden and unknown to many!

1. Plaza de Olavide (Chamberí)

Plaza de Olavide is my favorite place in the entire world and that’s not an exaggeration. As I lived in the neighborhood of Chamberí for over a year, I visited this plaza almost every single day.

This plaza is designed around concentric circles whose center is a circular fountain. The first inner circle is a large pedestrian area lined by benches. The second circle out is dedicated to spaces for activities including a little kids playground, a big kids playground, a senior citizen exercise station and even a de facto dog meetup section. The third and outermost circle is lined with the terraces for outdoor seating of restaurants and bars.

friends on a playground at night in plaza olavide, madrid
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smoking weed and playing on the playground at Olavide

These bars and restaurants occupy the ground levels of the buildings that form the large circle. There are side streets that radiate out from the circular plaza that are also pedestrianized and include even more options for dining, drinking and hanging out. Because spaces were included for every demographic, you will see people of every age and all walks of life in just this one circular area. The design of this plaza is absolute perfection.

Plaza de Olavide recently underwent construction (2023-2024) to revamp its look and function so that now there’s even more space to walk and play, more seating options and greenery.

Plaza de Olavide Points of Interest

  • Cafeteando – a tiny specialty cafe with delicious and thoughtful coffee. My favorite is the iced americano because it’s shaken!
  • Cheesecake Avenue – cute upscale bakery specializing in tiny cheesecakes of various flavors
  • Alma Nomad Bakery – tiny but incredible artisanal bakery (and café) with a wide variety of pastries for any time of the day
Store windows of Alma nomad bakery, madrid
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the tiny benches outside of Alma
  • Cafe Bar Arco Iris – cheap, no frills bar
man sits in front of Bar arco iris sign in plaza olavide, madrid
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you can’t miss the rainbow neon sign of Arco Iris
  • JG Cerveceria – a no nonsense bar and cafetería
breakfast at plaza olavide, madrid
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breakfast at JG Cervecería
  • Mama Campo – health-focused restaurant serving elevated dishes with colorful chairs, often requiring reservations for dinner
  • La Oliva – A no frills bar with probably the best seats in the house due to the tall trees that surround it and view of the fountain
  • The Dash – a swanky cocktail bar with a cool classy vibe
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classy cocktails at The Dash
  • Zúccaru – a gelato shop with fun flavors and Italian treats
  • Toma Café 2 – a top café in Madrid with brunch, pastries and outdoor seating (bringing your laptop is discouraged)
man sits outside of Toma Cafe in Plaza Olavide
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excellent latte and outdoor seating at Toma Cafe 2
  • Vino & Compañía – a spacious bottle shop (wine) that looks like a library with an excellent selection of high quality wines, also offering wine tastings
the store front of Vino & Compania in plaza olavide
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Wine and cheese tastings available every Saturday at Vino & Compañía!

2. Plaza de las Comendadoras (Conde Duque)

Plaza de las Comendadoras is named after the convent of the same name that takes up the northern edge of the plaza. It has been defunct for a while but a project is underway to bring it back to life.

friends at an outdoor table in front of Cafe moderno in plaza de las comendadoras, Madrid
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Café Moderno at dusk in the summertime

This plaza is great for all types of activities. The late afternoon is a popular time for people to bring their dogs to play together, making it a good spot for dog watching. Also available in this plaza is a playground that’s excellent for lighting up a joint at nighttime. In the wintertime this is an excellent choice of plaza because it gets sun until it sets.

Plaza de las Comendadoras Points of Interest

  • Café Moderno – this café bar is a popular spot for expats and locals alike. During popular times like the evening and the weekend (and whenever the weather is good) it gets crowded! The bar’s food and drink offerings are actually not very good and the prices are slightly inflated due to its popularity but the location and vibe are really unbeatable. The building that Café Moderno lives in is famous for being the home of Penélope Cruz’s character in the 2021 Almovedar movie of Madres Paralelas (Parallel Mothers).
Plaza de las Comendadoras
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Cafe Moderno is illuminated by the sunshine – even in winter!
  • Kramer – the bar next door is owned and run by Café Moderno meaning that they share the same terrace
  • La Taquería de Birria Comendadores – this Mexican restaurant is a good alternative to Café Moderno if you can’t manage to snag a table there. I can’t speak for the food at this restaurant but they have pretty solid micheladas and they give out free chips and salsa with drinks.
Micheladas in Plaza de las comendadoras
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micheladas at La Taquería de Birria Comendadores
  • Cafe Federal – a popular Australian-inspired brunch spot with plenty of indoor and outdoor seating. Pastries and coffee are excellent and they also serve alcohol. Some tables inside are designated for working on your laptop. Very popular with expats and can be crowded on the weekends.

3. Plaza de la Paja (La Latina)

girl in plaza de la paja, Madrid in summer
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Plaza de la Paja on a hot summer day

This spacious plaza located on a bit of a downhill slant, bordered on the uphill side by the Church of St. Andrew the Apostel (Iglesia de San Andrés Apóstol) and the opposite side by the Garden of the Prince of Angola (Jardín del Príncipe de Angola). This plaza has a wide range of high quality restaurants to choose from. During dinnertime (starting at 8PM) it will be harder to find an open table because many are reserved for dinner and Spanish dinner can go well into the night.

Plaza de La Paja Points of Interest

  • Garden of the Prince of Angola – a beautiful hidden garden that’s great for reading or a first date 😉
man poses in the garden of the prince of Angola, Madrid
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The Garden of the Prince of Angola makes for an excellent location for a photo shoot

Viva Burger – a solid vegan restaurant

girl in sunglasses having a beer in Plaza de la Paja, Madrid
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beers at Viva Burger’s terrace
  • La Musa – classic Madrid restaurant for slightly elevated tapas
  • Vanila – a barebones bar (no indoor seating), servers bring you a different round of snacks with each beer
  • El Bacaro de Fabio La Latina – a restaurant that serves Aperol Spritz, they give you a small tapa with each round of drinks
  • ArtQUITECTURA StudioBar – a bar at the bottom of the hill whose terrace is situated on a stairway, excellent for good vibes, cocktails (a rarity), and small bites.

4. Plaza de Cascorro (La Latina)

Plaza de Cascorro during a summer festival
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Cascoro during a summer festival

During the fall, when the residents of Madrid come back from summer vacation, you won’t easily find an open table at Cascorro! Because of its central location in La Latina, it’s a very popular meetup spot for young locals and expats alike. It is also the center of Madrid’s famous Sunday flea market El Rastro.

Plaza de Cascorro Points of Interest

  • Mamúa Café Bar – great brunch restaurant
  • Café del Arte – a cafe (also serving beer) with a spacious interior that allows work on laptops
  • Café des Sportes – a cute bar serving French food, try the cheese board
  • Cor e Cor – a mediorce Italian restaurant good for if you want an Aperol Spritz
Aperol Spritz and nuts at plaza cascorro
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  • Casa Amadeo Los Caracoles – iconic bar founded in 1942 that specializes in snail stew 🐌!

5. Plaza del Biombo (Palacio)

While the location of Plaza del Biombo is really in the thick of old Madrid (it’s situated practically behind the famous Mercado de San Miguel), it’s relatively unknown and tucked away from the hustle and bustle of the center. There’s a beautiful fountain on one wall of the plaza and beautiful trees that provide shade in the summer months.

Four Madrid – craft coffee, pastries, natural wine and brunch. The prices are a bit high but are proportional to the quality. The inside is spacious and they allow laptop work. The wifi reaches all the way to the terrace!

6. Plaza de Matute (Las Letras)

plaza de matute in Madrid
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the cute triangular Plaza de Matute

This tiny triangular plaza is a little hidden gem that you’d miss if you weren’t paying attention. Surrounded by beautiful building facades, it’s located in the historic and lovely Barrio de Las Letras. This neighborhood is packed with excellent restaurants serving traditional Spanish food.

Plaza de Matute Points of Interest

  • El Imparcial – a casual quirky bar that’s colorfully decorated with a small outdoor terrace
two friends inside El impacial bar
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the colorful interior of El Imparcial
  • Ambu Coffe Letras – excellent craft coffee and yummy pastries
  • Alimentación Quiroga – restaurant from 1958 that specializes in cured meats and cheeses and wines. I highly recommend stopping here for a taste of Spanish food!


7. Plaza de la Cruz Verde (La Latina)

Plaza de la Cruz Verde can be found at the bottom of Plaza de la Paja after you cross the street. It’s a small plaza with a fountain on one end but has a few terrace bars you can choose from. Facing south you get a nice view of the Viaduct of Segovia and facing east you get a nice view of the Church of St. Andrew the Apostel (Iglesia de San Andrés Apóstol). Win-win!

man with beer sitting in front of iglesia de san andres apostol, Madrid
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Iglesia de San Andrés Apóstol in the background

Café del Monaguillo – this cute little coffee shop and bar has a terrace outside and a little library inside with English and Spanish books to pass a nice afternoon.

8. Plaza Santa Bárbara (Antón Martín)

If you’re not a tourist you might not find yourself in this area. This plaza is a bit more hectic due to the proximity of the large street San Bernardo bordering the northern edge as well as the many restaurant chains located in this plaza. I’m recommending it if you happen to be in the area as a spacious plaza with plenty of seating options.

Plaza Santa Bárbara Points of Interest

  • 100 Montaditos – an iconic Spanish chain famous for its 1 euro tapas and beers on Wednesdays and Sundays
fried foods from 100 montaditos
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you can expect a lot of fried foods and massive jars of beer at 100 Montaditos
  • GoodNews – a newsstand that doubles as a cafe, serving up some of my favorite flavored iced lattes in Madrid.
  • Librería Santa Barbara – a cute little bookstore in the middle of the plaza

9. Plaza de Santa Ana (Las Letras)

This central plaza is a bit touristy due to its proximity to Sol, the center of Madrid. However, its massive so there are many options here for dining and drinking. A bonus is that most of the restaurant terraces are very well shaded and in the winter, heated.

Plaza de Santa Ana
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the Santa Ana Plaza terraces are well protected from the cold in the winter

10. Plaza dos de Mayo – side streets only (Malasaña)

Plaza dos de Mayo is one of the most well known plazas among young living in people in Madrid. Malasaña is widely considered the alternative neighborhood of Madrid, making it popular among locals and expats. In reality this translates to overhyped, overpriced, overcrowded and a bit grungy.

The plaza itself is centered around a large, gated statue. This plaza, as it was meant to do, serves so many purposes. It is the playground for an elementary school which is located in one of its corners. It hosts an outdoor market each weekend and is lined with restaurants and bars. Many young locals blasting music on their speakers and some homeless people drinking in public (not legal in Spain!) are often hanging out in this area.

If you are to meet with a friend in Plaza dos de Mayo, may I recommend the bars on the side streets! They are far away enough from the overcrowding and actually provide a pleasant place to hang out.

Restaurante Cabreira and La Dominguita – these are spots on the side streets I will agree to if my friends want to hang out at Dos de Mayo. There’s nothing really special about them lol.

Plazas of Honorable Mention

Some plazas I decided not to put on the list because they don’t really compare to the others in terms of size and options. If you’re a tourist it’s likely that you aren’t seeking out these smaller and more local plazas because they don’t have many options. However, if you’re looking for new plazas to explore to add a little variety to the drinking lives of you and your friends in Madrid I’m listing them here for your reference.

Plaza Cristino Martos (Princesa)

friends sitting at terrace in Plaza Cristinio Martos
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friends and beers at the terrace of La Parrilla de Nino

This is a small plaza very close to Plaza España that is a great option for a drink if you’re meeting some friends before going to the movie theater at Cines Renior.

Plaza de Guardias de Corps (Conde Duque)

Plaza de los Guardias de Corps is a tiny and quiet plaza in the neighborhood of Conde Duque. There are a few benches in the middle and a small terrace bar on one side.

Mini Shop Madrid – a unique clothing shop that’s great for streetwear

interior of Mini shop Madrid
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the cool interior of Mini Shop

Plaza Conde de Barajas (Sol)

This central plaza right behind Mercado de San Miguel is a nice getaway from the crowds. There are only two terrace options here but the plaza itself is beautiful since one side is completely residential and the facades of the building are dominated by glass covered balconies.

Café Federal – the original location of the Australian-inspired brunch spot frequented by expats and tourists. Can get very crowded! They also serve beer and wine.


In retrospect, this post turned out to be an ode to my friends as I’m sure you can tell from all the different smiling faces in the photos. I’ve spent hours and hours with my friends chatting, plotting, laughing and crying over pints of beer, glasses of wine, cups of coffee, pastries, brunch, meals all over Madrid’s plazas. Plazas are the reason I have so many close friendships specifically in Madrid. There’s literally nothing else we do better. Good thing there’s so many of them!

Plazas are my absolute favorite way to enjoy Madrid and is a source of my deep appreciation for the city. I hope, through its plazas, you find Madrid as wonderful as I do.

❤️ Valerie 🍻🍷☕️

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